Distilled Spirits Council President and CEO Chris Swonger Statement in Response to the 15% Tariff on EU Spirits in the U.S.-EU Final Statement
“While we greatly appreciate President Trump’s efforts to protect American manufacturing jobs, we are disappointed that this joint statement did not include permanent tariff-free trade for distilled spirits on both sides of the Atlantic.
“We commend the administration for safeguarding U.S. spirits from tariffs in the short term but without a permanent return to zero-for-zero tariffs on spirits, American distillers do not have the certainty to plan for future export and job growth without the fear of retaliatory tariffs returning.
“This is an unsteady time for the U.S. hospitality industry with sales of spirits facing a slowdown and rising food and labor costs. These new higher tariffs on EU spirits products will further compound the challenges facing restaurants and bars nationwide.
“We are determined to continue engaging with the Trump administration to urge for additional negotiations with the EU to get our special spirits industry back to zero-for-zero tariffs, which will benefit consumers and protect American jobs across the agriculture, manufacturing, and hospitality industries.”
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BACKGROUND
- A 15% tariff on EU spirits imports to the U.S. could result in an estimated retail sales loss of over $1 billion and more than 12,000 job losses, according to an economic analysis by the Distilled Spirits Council of the United States.
- On August 5th, the EU formally announced a six-month suspension of retaliatory tariffs on U.S. imports, including distilled spirits, wine, and used barrels, which will remain in place until February 5, 2026.
- Due to the imposition of the EU’s retaliatory tariff in 2018, American Whiskey exports to the EU, the largest American Whiskey export market, plunged 20%, from $552 million to $440 million (2018-2021). Since the tariffs were suspended in 2022, American Whiskey exports to the EU surged nearly 60%, climbing from $439 million in 2021 to $699 million in 2024.